OTHER REAL ESTATE OWNED

6 Months Ended

Jun. 30, 2011

OTHER REAL ESTATE OWNED

OTHER REAL ESTATE OWNED

NOTE 5 — OTHER REAL ESTATE OWNED

Other real estate owned is recorded in other assets on the balance sheet.  Activity in other real estate owned was as follows:

	2011			2010
Beginning Balance — January 1	$	11,453		$	10,363
Transfer to other real estate owned	13,660			4,059
Sales	(10,228		)	(6,941		)
Net loss and write-downs	(561		)	(16		)
Ending Balance — June 30	$	14,324		$	7,465

Expenses related to foreclosed assets include:

	Six Months Ended
	June 30, 2011		June 30, 2010
Net loss and write-downs	$	561	$	16
Operating expenses	423		211